Caledonia Mining Corporation has given DirectorsTalk a gold production update from its 49 per cent owned subsidiary, the Blanket Mine (“Blanket”) in Zimbabwe, for the quarter and year ended December 31, 2015. All production numbers are expressed on a 100 per cent basis and are based on mine production data and are therefore subject to adjustment following final assay at the refiners. Production includes work-in-progress as at December 31, 2015.
· Approximately 11,518 ounces of gold were produced during Q4 2015, representing a 10.6 per centincrease on the gold produced in Q4 2014 (10,417 ounces) and a 5.4 per cent increase on the gold produced in Q3 2015 (10,927 ounces).
· Total 2015 gold production was approximately 42,806 ounces, a 2.5 per cent increase over the annual gold production in 2014 of 41,771 ounces and 1.9 per cent higher than the production guidance of 42,000 ounces for 2015.
· Targeted gold production for 2016 is approximately 50,000 ounces, unchanged from previous guidance. The rate of production is expected to increase over the course of 2016 as production from the No. 6 Winze increases. The quarterly production profile is expected to be approximately 10,700 ounces of gold in the first quarter of 2016 increasing to approximately 14,000 ounces of gold by the fourth quarter of 2016.
Commenting on the production for Q4 and the whole of 2015, Steve Curtis, Caledonia’s Chief Executive Officer said: “Production in the fourth quarter of 2015 was higher than in both the preceding quarter and the comparative quarter of 2014. Production in 2015 was also higher than the previous year and slightly exceeded our guidance.
“The increased production reflects the continued progress in implementing the Revised Investment Plan, announced on November 3, 2014. The completion of the Tramming Loop on 22-Level (750 meters below surface) slightly ahead of schedule in mid-2015 was an important factor which contributed to the increased production by alleviating the underground logistical problems which constrained production in 2014.
“Target production for 2016 of approximately 50,000 ounces represents an increase of approximately 17 per cent from the production achieved in 2015. The increased production in 2016 will be derived from the No. 6 Winze, which is scheduled to commence production in the middle of the first quarter of 2016, and will provide access to ore below 750 meters. .
“Due to the high fixed cost component at Blanket and the generally stable environment for input costs, the projected increase in production to approximately 50,000 ounces of gold is expected to result in a lower average production cost per ounce.”
Caledonia expects that its financial results for the quarter and year to December 31, 2015 will be released before March 31, 2016
